Personal Loan Calculator

The monthly payment is calculated using the standard loan formula: P times [r(1+r)^n] divided by [(1+r)^n minus 1], where P is the loan amount, r is the monthly interest rate (annual rate divided by 12), and n is the number of monthly payments. This calculator applies that formula and also shows total interest paid over the life of the loan.

The stated interest rate is the base cost of borrowing. APR includes the interest rate plus origination fees (typically 1-8% of the loan amount at US marketplace lenders) and any other mandatory charges, expressed as an annual percentage. Under TILA, lenders must disclose APR. Always compare APRs, not interest rates, when shopping for a personal loan.

US personal loan APRs range from approximately 9-14% for excellent credit (750+ FICO) to 20-28% for good credit (670-749 FICO) and up to 36% for fair credit borrowers. Lenders like LightStream offer the lowest rates for prime borrowers; online marketplace lenders like Upstart use non-traditional underwriting that may help borrowers with limited credit history.

Most major US lenders require a minimum credit score of 580-640 (fair credit). Better rates are available at 670+ (good credit) and the best rates at 750+ (excellent credit). Credit unions often have more flexible requirements for existing members. Pre-qualification with a soft credit inquiry (available at most online lenders) lets you check rates without affecting your score.

Most US personal loans are unsecured, meaning no collateral is required. Secured personal loans backed by savings or a vehicle typically offer lower rates but put the collateral at risk if you default. Unsecured loans are faster to obtain and appropriate for most uses. If your credit score is low, a secured loan may provide access to better rates.

The monthly payment uses the standard amortization formula: monthly payment equals the loan principal multiplied by the monthly rate times (1 plus monthly rate) to the power of n, then divided by (1 plus monthly rate) to the power of n minus 1, where n is the number of monthly payments. This calculator shows the result and total interest immediately.

The interest rate is the base cost of borrowing. APR (Annual Percentage Rate) under FCA regulations includes the interest rate and any mandatory fees, such as arrangement fees, making it a more accurate comparison metric. The Representative APR must be available to at least 51% of approved applicants. Your actual APR depends on your credit profile.

UK personal loan Representative APRs typically range from 6-9% for loans of 7,500-25,000 pounds to borrowers with good credit, rising to 15-40% for smaller loans (under 3,000 pounds) or borrowers with limited credit history. The lowest rates are usually available from high-street banks and building societies for existing customers with strong credit.

UK lenders use their own scoring systems and credit file data from Experian, Equifax, or TransUnion. There is no single universal credit score threshold. Most mainstream lenders prefer applicants with a good or excellent credit history (no missed payments, low credit utilisation). Check your credit report on ClearScore or Credit Karma (free services) before applying.

The majority of UK personal loans are unsecured, meaning no collateral is required. Secured loans (homeowner loans) use your property as collateral and may offer lower rates for larger amounts or longer terms, but put your home at risk. Unsecured personal loans are suitable for most purposes and do not require property ownership.

The monthly repayment uses the standard amortization formula based on the loan amount, interest rate, and term. Australian lenders are required to display a comparison rate alongside the advertised rate. The comparison rate includes most fees and gives a more accurate measure of the true cost. This calculator uses the rate you enter, so use the comparison rate for the most accurate result.

The comparison rate combines the interest rate with most fees (establishment fee, monthly service fees) into a single annual percentage rate. It is standardised for a 10,000 dollar loan over 3 years for personal loans. It makes it easier to compare products from different lenders on a like-for-like basis. Always look at the comparison rate in addition to the headline rate.

Secured personal loan comparison rates in Australia typically range from 6-12% per annum. Unsecured personal loan comparison rates typically range from 8-20% per annum depending on the lender and your credit profile. Non-bank lenders and buy-now-pay-later alternatives can charge more. Compare on Canstar or RateCity for current market rates.

Australian credit bureaus (Equifax, Experian, illion) each provide scores on different scales. As a guide, a good score is generally above 625 (Equifax) or above 500 (illion). Major banks typically require good to excellent credit. Non-bank lenders may accept lower scores but charge higher rates. Check your free credit score via Equifax or Credit Simple before applying.

Secured personal loans (backed by a vehicle or term deposit) typically offer lower rates and higher loan amounts but put the asset at risk if you default. Unsecured personal loans are faster to arrange and do not require an asset, making them suitable for most personal purposes. Compare both on Canstar to see the rate difference for your loan amount.

Monthly payments are calculated using the standard amortization formula with a monthly interest rate derived from the annual rate. Note that Canadian mortgages use semi-annual compounding by law, but most personal loans and lines of credit use monthly compounding similar to the US. Always confirm the compounding frequency with your lender for the most accurate result.

The annual interest rate is the base cost of borrowing. The Annual Percentage Rate (APR), under the federal Cost of Borrowing Regulations, must include the interest rate and all mandatory fees. Compare APR across lenders for a true cost comparison. Canadian lenders must provide a cost-of-borrowing disclosure statement before you sign.

Personal loan APRs at major Canadian banks typically range from 7-14% for prime borrowers. Credit unions often offer 6-12%. Online non-bank lenders serve a wider range: roughly 8-46.99% depending on credit profile. Payday loans and high-cost installment loans are regulated provincially and should generally be avoided due to very high effective rates.

Canadian credit bureaus (Equifax and TransUnion) score borrowers from 300 to 900. A score above 660 is generally considered good; above 760 is excellent. Major banks typically lend to borrowers with scores above 650. Credit unions may be more flexible for members. Check your score free through Borrowell (Equifax) or Credit Karma Canada (TransUnion) before applying.

Unsecured personal loans do not require collateral and are the most common choice for personal expenses. Secured personal loans backed by a vehicle or savings deposit typically offer lower rates. A secured line of credit (such as a home equity line) offers even lower rates if you own property. Compare rates on Ratehub before deciding which product best suits your needs.